Warrants Highlight

Yanlord gained 8.3% in twelve days

As we approach the month end, the STI added 1.1% yesterday, outperforming the region. The MSCI Asia Pacific index gained 0.9% for the day. Among the stocks in Singapore, Yanlord stood out, raking in a 4.4% gain day on day.

Macquarie’s Yanlord warrants

Significant gains in November
November has been a good month for Yanlord with its share price rallying 13.9% since 31st October. Noticeably, the bulk of the gains arrived after mid November with the shares breaking its 5-month high of $1.345. Yesterday, the share price closed at $1.435, inching a tad closer to the year-to-date high of $1.465 on 24th February.

Revenue increased 253.9% in 3Q2012
On 12th November, the Chinese developer announced its third quarter financial statements with 9M2012 revenue rising 32.6% compared to the previous year. Looking solely at the third quarter, revenue for the Group leapt 253.9% compared to 3Q2011. The increase in revenue was mainly due to strong sales of properties as well as higher gross floor area (GFA).

Although the Chinese government has been increasing austerity measures to curb the soaring property prices in the country, Yanlord’s high quality developments continued to be well received.

Chairman Zhong expresses confidence
Chairman Mr Zhong Sheng Jian was pleased with the results and said that “the ability to deliver quality developments that continue to meet customer demands and build consumer confidence remains the cornerstone of the company’s sustained development and is reflected in its strong 9M2012 performance.”

Going forward, Mr Zhong remains confident about the long term development of the housing sector in China which is “underpinned by strong demand arising from rapid urbanization into first and second-tier cities and stable development of the domestic economy”. However, the macro environment remains shaky and the Group will “continue to maintain its healthy cash position and prudent financial policies” so as to mitigate the situation.

Since the company announced its third quarter results two weeks ago, Yanlord has jumped 8.3%.

Singapore Market Wrap

Region of green

S&P's rally on Wednesday night after positive statements from Republican house speaker on the "Fiscal Cliff" issue provided a boost to the regional bourses on Thursday. The STI gained 1.1% to close at 3,045.9 yesterday, outperforming most Asian markets. After the trading session, Bloomberg released a latest poll result done by global investors which showed two-thirds of participates describing the global economy as either stable or advancing.

Call STI 3100MBeCW130228 (RF9W) exercise level 3,100.*
Put STI 2950MBePW130228 (RG0W) exercise level 2,950.*

SembMarine bags drillship contract
SembMarine announced yesterday that it's wholly-owned subsidiary Jurong Offshore has secured a contract worth US$806.4 million from Sete Brasil. This contract is for the design and construction of a drillship, which is also the seventh unit of drillships SembMarine has secured since February this year. SembMarine jumped 4.1% to $4.56 day-on-day after the news release.

Call SembMar MBeCW130604 (RE6W) exercise price $4.80.*
Put SembMar MBePW130701 (R0OW) exercise price $4.40.*

Cosco secures bulk carriers deal
Cosco has announced that its 51% owned subsidiary Cosco Shipyard Group secured a contract from European buyers to build two bulk carriers. This contract is worth over US$41 million and the carriers are scheduled for delivery in the second half of 2014. Cosco rose 1.1% to $0.92 for the trading session.

Call CoscoCorMBeCW130204 (Q4RW) exercise price $1.10.*

Overnight Market Wrap

Whipsaw session led by fiscal cliff talks

The S&P index swung between gains and losses in tandem with the conflicting remarks about the progress of budget talks and the index ended up 0.4% yesterday.

The S&P initially erased gains from the early part of its trading session when Republican House Speaker John Boehner said that there was "no substantial progress" made in the budget talks. Though he remains hopeful that the country will be able to avoid the fiscal cliff, Boehner said that President Barack Obama must "get serious" about it.

Fortunately, the index recovered after Democratic Senator Chuck Schumer mentioned that there has been progress in talks and the White House speaker Jay Carney said the administration is optimistic about the negotiations.

In other news, US GDP grew at 2.7% while lesser Americans filed for unemployment claims.

Overnight Markets

Indices	Last	Change
STI	3045.90	1.1%
HSI	21922.90	1.0%
DJIA	13021.80	0.3%
S&P 500	1415.95	0.4%
Nasdaq	3012.03	0.7%
China A50	6884.70	-0.5%

Corporate News

Corporate Announcements

Capitaland has announced the establishment of a 75:25 joint venture, Allamanda Realty Pte Ltd, with Mitsubishi Estate Asia where Capitaland holds 75% interest.

Ex-dividend dates:
Fri 7 Dec: SPH ($0.17)